The meeting was called to order at 9:10 a.m. by Chairman, Mike Clumpner. Chairman Clumpner also
introduced Linda Cross who will be replacing him as the public representative on this Board starting
August 1, 2000.

APPROVAL OF BOARD MINUTES

Motion was made by Gerard Randall to approve the minutes of April 28 Board meeting and seconded
by Marques Franklin. Approved.

REPORT OF EXECUTIVE SECRETARY

Jane Hojan-Clark updated the Board on new activity. The New Teacher of the Visually Impaired Loan
Program is in the process of getting set up. It will go into effect 2000-01.

There have been revisions to the WISSIS Survey Form for collection of data from each of the systems.

The Financial Aid Directors, through the Wisconsin Association of Student Financial Aid
Administrators, are reviewing the policy and procedures manual for recommendations and changes.
Feedback is due January 1.

The EdVest Program has expanded for 2000-01 to allow families to purchase future tuition at
current rates. Funds can be spent on books, room and board as well as tuition. This will go into
effect as of August 1. Funds in this program cannot be included in the calculation of state
financial aid eligibility. This will require a system of monitoring that needs to be worked out.

WHEG - WTCS has made 876 more awards with 9.15% less committed than at this time last year. WHEG
- UW has committed 753 more awards and .95% more committed than at this time last year. Jane
indicated they would be watching the progress of both systems closely to determine if formula
changes need to take place. Mary Jo Green cautioned that it may be premature to change the formula
because the effect of the changes in the federal formula are still unknown as to how it will effect
the WHEG population. It appears more students are eligible, but we know some students have also lost
eligibility. HEAB staff will continue to watch the trends. Wisconsin Tuition Grant has committed
2,620 more awards and 12.26% more committed than at this time last year. The WTG figures already
reflect the formula changes.

Total applicants appear to be increasing (1998-99 totaled 163,305; 1999-00 totaled 175,430 and
the number through July 21, for 2000-01 is already 18,336).

Jane provided a run down of each program with estimated carry over from 2000-01. The Handicapped
Student Grant Program had a substantial amount of carry over for the year. The Indian Student
Assistance Grant had carry over because no special project money was spent this year due to timing
of when the funds became available. Expectations are that the funds will be spent this year.
Minority Retention Grant-Independent Colleges was expected to be spent with some unexpected refunds
and will be fully spent by the end of this year. The Minority Retention Grant-WTCS was spent 100%.
The Minority Teacher Loan had unexpected refunds, so there will also be some carry over in this
program.

Jane has visited Wisconsin colleges and universities to discuss individual needs at the campuses
and the common thread that exists across the state for educational needs. The mission of the agency
is to provide access to higher education for residents of Wisconsin. HEAB's policies are primarily
based around need-based programs, merit-based programs or specific needs of the State. The budget
instructions indicate a 0% increase the first year and a 1% increase for the next year. The
instructions also indicate an expected 5 % decrease. The approach that the Staff has taken was the
0% and 1% increase but then have a list of priorities so that if money should be available, there
was a plan in place.

The Executive Secretary's recommendation that the number one priority, based on the discussions
she had with the schools, should be to meet the proportion of financial need today that was met by
the programs ten years ago and to increase grants to their statutory maximum (TIP and WHEG to the
maximum of 1800). Mary Jo Green made a motion, seconded by Jeremy Shea, to recommend increases in
the WHEG, WTG and TIP grants to their statutory maximums and to meet the proportion of financial
need today that was met by the programs 10 years ago, as the number one priority because of the
increased number of applicants, more financial need and limited financial resources, and to support
our commitment to provide access to Wisconsin residents before anything else.

A discussion on the motion followed. Steve Van Ess suggested another measure to add, which has
also been looked at in the past, which is to keep pace with tuition increases. Bill Steiger asked
what that would mean as a percentage increase and/ or dollar amount increases. Jane provided figures
demonstrating the increase based on the current statutory maximum: WTCS WHEG - 112% increase; UW
WHEG - 59% increase; TIP - 59% increase. To meet the same proportional financial need, the increase
would have to be 12% for all programs. President Clumpner requested clarification from Steve Van Ess
in regard to his comments on adding the pace of tuition increases. Steve Van Ess offered an
amendment to the motion with the goal to achieve the statutory maximum of $1800 to meet the same
proportional need today comparable to 10 years ago with at least each program being increased by the
amount of tuition increases as funds are available. The motion read as amended: "The Board is in
agreement to recommend funding increases in WHEG and TIP to bring the grant amounts up to the
statutory maximum of $1,800; to meet the same proportional financial need for TIP, WHEG and WTG as
was met 10 years ago; and, at a minimum, keep pace with tuition increases for all programs."

Roll call vote. 9-1 passed.

WI Tuition Grant - The recommendation was made to eliminate the maximum of $2300 as
defined in the statute to allow the HEAB Board more flexibility in setting the maximums to meet
current needs. There was concern that the $2300 award was not meeting the goals it was designed to
meet. HEAB Staff recommended this also be a number one priority. Sr. Mary Beth Kornely supported the
need for flexibility because of the changes in the industry, the increased need of students and lack
of resources.

Gerard Randall expressed concern about how to measure what level of support each of these items
should have on the "wish list". He agreed that more students are needy now and students are forced
to take more loans but he was not sure of how we communicate that so if funds do become available,
the legislature has a sense of where our preferences are.

Jane made the clarification that in this recommendation, the Board is not asking for additional
dollars but to eliminate the statutory language creating the $2300 maximum.

A motion was made by Steve Van Ess and seconded by Gerard Randall that the Board recommends the
elimination of the language of the $2300 statutory maximum for the WI Tuition Grant.

Roll call vote: 10-0 passed.

WI Indian Grant - The Staff recommendation is to double the appropriation and to double
the award to restore the Indian Assistance Grant Program back to the level it was in 1995-96. A
motion by Steve Van Ess and seconded by Gerard Randall recommended the increase of the WI Indian
Grant fund maximum to $2200 in the statutes and requested additional dollars to accommodate that
change. A change in statutory language is necessary in order to award a maximum of $2200.

Roll call vote: 10-0 passed.

Minority Undergraduate Grant for WI Technical College Students and Independent College or
University Students - Staff recommends the expansion of the Minority Grant program to make it
available to first-year students as well as to continuing students for recruitment as well as
retention purposes. There is concern in the state regarding the need to provide minorities access to
higher education.

Marques Franklin made a motion and seconded by Steve Van Ess to expand the Minority Undergraduate
Grant Program to first-year students; pursue an increase in funding to facilitate the expansion in
order to meet the existing need as identified.

A discussion of the motion followed. Jeremy Shea asked the Chairman for the history of the
program and why it was set up as is. Mike indicated that he recalled the key word was retention and
Jane concurred. Gerard Randall spoke in support of the Minority Grant as a retention tool rather
than a recruitment tool. He has seen where students may get the outside help from scholarships,
churches, etc. to start school but have difficulty finishing. If the Board had to make a choice, he
would support it as a retention tool first. Sandy Dercole indicated that WEOP concentrates their
efforts on minority students in the first year and try to focus their TIP Grant funds in their
second year for retention. Sr. Mary Beth indicated her experiences have been completely opposite -
even though the student has a lot of need, she can't offer the minority grant that first year.
Students may get very discouraged and leave that first year. She suggested expanding the program to
the first year to provide the support a student may need for retention. Steve Van Ess pointed out
two distinct groups of students: some with family support and community resources and then those who
have very little support and, actually for them, that first year is a very high-risk year. Student
loan default statistics support this concept. It has been shown that if students drop out in the
first year with loan debt, the chances of default are higher. Sandy Dercole made the point that a
lot of these programs have been diluted over the years and may not be meeting the real needs. Mary
Jo Green has seen in her system a lack of resources for minority students at recruitment and at
retention, even with the Minority Grant, because it is so limited in funding. She commented that she
could only fund 3 students in their second year at $100 each, which looses effectiveness at any
level.

Roll call vote: 9-1 passed.

Minority Teacher Loan Program - This program has a purpose not only to provide minority
students access, but also to provide teachers in minority areas that have a shortage. The staff
recommends expanding the minority teacher loan program to allow graduate students as well as
undergraduates and to increase funding to allow the expansion and to meet the financial need and to
bring the maximum grant to $4000 from $2500. Steve Van Ess requested clarification of the expansion
to graduates and their requirement to teach in a minority setting. If this change was included, it
would change the whole program emphasis. Gerard Randall also had some concerns in changing the
program emphasis. A motion was made by Gerard Randall and seconded by Bill Steiger that the maximum
be eliminated to allow the annual maximum of $4000 from $2500 and to increase the appropriation to
cover the increase.

Roll call vote: 10-0 passed.

Dental Capitalization Program - This program was essentially started to increase the
number of Wisconsin dentists. There may be a shortage of dentists in the near future. The majority
of the students funded by this program do stay in Wisconsin; therefore, meeting the intent of this
program. The average dental student graduate has an average loan debt of $82,000. The rural areas
and the medicaid recipients have a shortage of dentists. This may be due to income levels and the
dentist's ability to pay back such high loan amounts.

The recommendations are:

To expand the dental capitalization program to increase the number of participants to allow 15
more students per year (total of 60) for a four-year program;

To increase appropriation funding to allow that expansion; and

To increase appropriation to allow for 50% of the cost of tuition ($15000 per student maximum).
The current appropriation allows for 33% of cost.

A discussion of the recommendation followed. Most recipients under this program do stay in
Wisconsin. We need to encourage students to stay in Wisconsin and this support would help in that
effort. We need to be sure to prioritize our efforts. Jane sees this as an important issue and would
like to see the board support it. Mary Jo Green suggested incorporating the phrase "must work in a
rural area or medicaid facility" after graduation. Jane indicated that the program should not be
limited since there will be an overall need to increase the number of dentists in the state.

A motion by Jeremy Shea and seconded by Gerard Randall to expand the program as indicated above
and provide the funding for the expansion.

Roll call vote: 7-3 passed.

Brain Drain Labor Force Deficit

The following recommendations were made:

Expand Academic Excellence Program to double the participation rather than increasing the cap of
$2250. This will allow the schools to nominate twice as many students.

Develop a new scholarship program for scholars of states other than Wisconsin. For every year
they receive the scholarship, they must stay/work in Wisconsin. If they do not, the scholarship
would turn into a loan.

Establish a new scholarship program to expand and/develop the technology industry open to
both WI residents and non-residents.

Gather and distribute names and addresses of WI academically strong high school graduates so
they can be recruited by Wisconsin Colleges.

Steve Van Ess indicated there are three different types of programs here: 1) existing programs;
2) recruitment programs and 3) new programs. Steve thinks many of the colleges already have mailing
lists of potential high academic students, therefore, they may want to review this closer. HEAB may
propose a pilot/study as an approach to the other two ideas. Sr. Mary Beth strongly feels the money
should go to WI residents first. Jeremy Shea concurred that the priority should be WI residents.

There was a motion by Steve Van Ess and seconded by Jeremy Shea to link the Academic Excellence
Scholarship to the cost of tuition and to expand the number of participants.

Roll call vote: 10-0 passed.

Consolidate Post-Secondary Financial Aid Programs Under HEAB

Jane explained that many state programs are administered by HEAB but that some are still
administered by other agencies or systems. By having all programs administered by one agency, we
could eliminate student confusion and duplication of efforts. Jane would encourage the Board to
include program consolidation with HEAB.

Gerard Randall made a motion seconded by Steve Van Ess that the Lawton Grant program continue to
be housed and administered by the UW System. Steve indicated that the Lawton program is currently
being run very well and would like to see it remain as is.

A discussion of the motion followed. Tess Arenes, AVP UW System, reported that for the Lawton
program, there were 1822 recipients. Tess pointed out that Wisconsin takes pride that we are the
only state public education system in the nation with a higher education plan for diversity and
economically disadvantaged diversity. Plan 2008 is a consumer-driven document, which surveyed over
2,000 people in the state over two years about what they wanted from state higher education. Among
students of color (over 800), their top three priorities were 1) create new pre-college programs; 2)
get more financial aid; and 3) help with retention. The UW System is keeping up with what the
students need and is definitely consumer-driven. This may not happen if the program is run through
HEAB.

Roll call vote: 9-1 passed.

Mary Jo Green made a motion and Jeremy Shea seconded that the Top Grant program continue to be
housed and administered by the Wisconsin Technical College System. Deborah Mahaffey, WTCS Board
indicated the WTCS colleges are anticipating that 8,000 students will be given the award,
approximately $6.5 million for 2000-01. Discussion continued. Sr. Mary Beth indicated that the
Lawton program is almost identical to state programs and can understand the individual schools'
efforts and the level of operation. Chairman Clumpner stated that he wanted to remind everyone that
the purpose of the Board is to provide support to the students; consolidating efforts may have more
consistency - the advantage is keeping it student-based and keeping programs equal.

Steve Van Ess made a motion seconded by Sandy Dercole to approve the list of priorities as written.

Roll call vote: 9-0 passed.

Appendix K - Performance Measures Jane explained the performance measures and what the
expectations are. Some of the programs are very hard to measure and how the programs impact students
is difficult as well. She asked everyone to take a look at it and to think about what may be a sound
approach for HEAB in terms of providing performance measures for the programs we administer. Steve
Van Ess suggested looking at reciprocity as a possible "identifiable" group to measure.

OTHER ISSUES
Jane explained the Federal Programs Status Report and a summary of the FY01 Budget Status. For the
Pell grant, we are looking at an increase from $3,300 to $3,500 or $3,650; for SEOG and College Work
Study - a slight increase. Perkins Loans will be level-funded. LEAP will be level-funded or an
increase.

Chairman Clumpner commented on the make up of the Board. He likes having the addition of the
Financial Aid Directors. They add knowledge to the Board that they have never had before. Jane
commended Mike Clumpner on his efforts on the Higher Educational Aids Board and presented him with
an award from Governor Tommy Thompson.

Clumpner made a motion and Steve seconded to recommend that other student assistance programs not
administered by HEAB will report data regularly to HEAB and those numbers be incorporated in data
provided to this Board.

Roll call vote: 9-1 passed.

NEW BUSINESS
Issue for October agenda is Distance Learning and what comes with it; varying academic year
start/end dates, less than half time students, etc.

Steve questioned whether the $1,800 maximum ceiling of WHEG may be a future item. Jane responded
that the current WHEG appropriation does not meet the current $1,800 maximum.

NEXT MEETING DATES

October 27, 2000
February 16, 2001
April 20, 2001

A motion was made by Mary Jo Green and seconded by Marques Franklin to adjourn the meeting. The
meeting was adjourned at 1:08 p.m.